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Special Edition  Friday, April 14, 2017
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*CMS Proposes 2018 Payment and Policy Updates for Medicare Hospital Admissions, 
Releases a Request for Information*

Proposed rule seeks transparency, flexibility, program simplification and 
innovation to transform the Medicare program

On April 14, CMS issued a proposed rule [ 
https://www.federalregister.gov/documents/2017/04/28/2017-07800/medicare-program-hospital-inpatient-prospective-payment-systems-for-acute-care-hospitals-and-the
 ] that would update 2018 Medicare payment and polices when patients are 
admitted into hospitals. The proposed rule aims to relieve regulatory burdens 
for providers; supports the patient-doctor relationship in health care; and 
promotes transparency, flexibility, and innovation in the delivery of care.

Through this proposed rule we want to reduce burdens for hospitals so they can 
focus on providing high quality care for patients, said CMS Administrator Seema 
Verma. Medicare is better able to support the work of dedicated hospitals and 
clinicians who provide the care that people need with these more flexible and 
simplified approaches. 

CMS is committed to transforming the health care delivery system  and the 
Medicare program  by putting a strong focus on patient-centered care, so 
providers can direct their time and resources to patients and improve outcomes. 
In addition to the payment and policy proposals, CMS is releasing a Request for 
Information to solicit ideas for regulatory, policy, practice and procedural 
changes to better achieve transparency, flexibility, program simplification and 
innovation. This will inform the discussion on future regulatory action related 
to inpatient and long-term hospitals.

In relieving providers of administrative burdens and encouraging patient 
choice, CMS is proposing:


  * a one year regulatory moratorium on the payment policy threshold for 
patient admissions in long-term care hospitals while CMS continues to evaluate 
long-term care hospital policies 
  * to reduce clinical quality measure reporting requirements for hospitals 
that have implemented electronic health records 

Due to the combination of proposed payment rate increases and other proposed 
policies and payment adjustments, CMS projects that hospitals would see a total 
increase in inpatient operating prospective payments of 2.9 percent in fiscal 
year 2018. CMS also projects that, based on the changes included in the 
proposed rule, payments to long-term care hospitals would decrease by 
approximately 3.75 percent in fiscal year 2018.

For More Information:


  * Full text of this excerpted CMS press release [ 
https://www.cms.gov/Newsroom/MediaReleaseDatabase/Press-releases/2017-Press-releases-items/2017-04-14.html
 ] (issued April 14) 
  * CMS fact sheet [ 
https://www.cms.gov/Newsroom/MediaReleaseDatabase/Fact-sheets/2017-Fact-Sheet-items/2017-04-14.html?DLPage=1&DLEntries=10&DLSort=0&DLSortDir=descending
 ] 

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